Israeli fixed line incumbent Bezeq has unveiled plans to take full control of satellite TV operator YES in a deal said to be worth up to ILS1.05 billion (USD271 million), according to Reuters.
As previously reported by CommsUpdate, in March last year Israel’s Antitrust Authority confirmed it would allow Bezeq to merge with YES, in which it currently holds a 49.8% stake, though it was said that a number of conditions had been made in return for giving permission for the tie-up, including that YES would not be allowed to acquire exclusive content from abroad for a few years, while Bezeq will be prohibited from marketing a triple-play bundle for the time being.
Now Bezeq has agreed to purchase the 50.2% in YES that it does not already own from Eurocom DBS Ltd; notably both Bezeq and Eurocom are controlled by Shaul and Yosef Elovitch. Under the terms of the deal, Bezeq will pay ILS680 million in cash for the shares and ILS1.54 billion in loans provided by Eurocom to YES. Eurocom will also reportedly be entitled to two additional contingent payments, with the first, for up to ILS200 million, to be paid based on tax synergies and the second, for up to ILS170 million, to be based on the business results of YES over the next three years. The deal requires approval from the Communications Ministry and shareholders.